About Our Newsletter
Weekly Market Strategies is a weekly on-line market letter commenting on the economy, economic indicators and the fundamental and technical aspects of the stock market.
Technical indicators and cycles are used to analyze the stock market and to predict the expected direction of the market during the next week and also the next few weeks and months.
We accurately predicted weeks in advance the October 2007 top and warned our subscribers about the coming sell-off. We recommended the purchase of put options to protect one’s portfolio. We also accurately predicted months in advance that the market would bottom late February/early March 2009 (actual date was March 9).
We also predicted in advance most of the tops and bottoms in the market during the past two years. Our past predictions can be found in our past news letters located in the past news letter file.
Mid-Week Update (10/07/2009)
Posted: October 7th, 2009 | Author: WMS
Mid-Week Update: We bought the DIAVV (DOW October 100 PUT) this morning at 3.10.
Issue 274
Posted: October 5th, 2009 | Author: WMS
Market Strategies
Covering Investing Success Strategies For
Stocks – Bonds – Interest Rates – Natural Resources – Currencies – Venture Capital – Gold
A Publication of Princeton Research, Inc. (www.PrincetonResearch.com)
Contributing Staff: Michael King and Dr. Jan Vandersande
October 5, 2009 Market Strategies Guide To Successful Trading
INDEX OPTION RECOMMENDATIONS
Two weeks ago we recommended the October 100 put option (DIAVV) to play the expected pullback. Our initial target of 9,500 was hit on Friday morning and half profits were taken at the open at a price of 6.10. We will close out the remaining half position at the open on Monday. The market is very oversold so a snapback rally should start this week. It is thus better to take our nice profits.
For investors it has continually been recommended that some puts are held to protect one’s portfolio (portfolio insurance) against sharp market sell-offs. New and/or additional positions can be bought on the expected rally into late August/early September. For those who have no put options to protect your portfolio we recommended the following options, especially on any rally: the DOW November 96 puts (davwr) or the November 98 puts (davwt) and the QQQQ November 42 puts (qqqvp) or November 44 puts (qqqvr).
For those of you who do not buy puts to protect your portfolio, there is an ETF that is the inverse of the DOW. The symbol is DOG and goes up when the DOW goes down and down when the DOW goes up.
Stock Option Recommendations
New Recommendations
KLAC- KLA-Tencor- 33.43- broke down out of a small top formation on Friday so puts are timely. Buy the November 35 Put- QJRWG- 3.10- for a move to 32 and then possibly lower. Place a stop loss on the option when the stock closes over 36. Take half profits when the stock is at 32.
SRS- Inverse Real Estate ETF- 10.70 – goes up when real estate stocks (REITS) go down and vice versa. Appears to have formed a small cup and handle bottom and broke out on Friday so calls are timely. Buy the November 10 Call- SKWKJ- 1.75- for a move to 13 and then possibly higher. Place a stop loss on the option when the ETF closes below 9. Take half profits when the ETF is at 13.